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Barrick Mining Trading at a Discount: Should You Buy the Stock Now?
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Key Takeaways
Barrick trades at a discount to peers as its shares retreat amid the recent pullback in gold prices.
Barrick's growth projects and strong cash flows support production and shareholder returns.
Higher costs and softer 2026 production outlook may weigh on margins and near-term performance.
Barrick Mining Corporation (B - Free Report) is currently trading at a forward 12-month earnings multiple of 11.04, a roughly 15% discount when stacked up with the industry average of 12.97X. It is also trading at a discount to its gold mining peers, Agnico Eagle Mines Limited (AEM - Free Report) , Newmont Corporation (NEM - Free Report) and Kinross Gold Corporation (KGC - Free Report) . Barrick, Newmont and Kinross Gold have a Value Score of B each, while Agnico Eagle has a Value Score of C.
B’s P/E F12M Vs. Industry, NEM, AEM & KGC
Image Source: Zacks Investment Research
B stock has lost its shine lately, with a pullback in gold prices, losing nearly 6% in a week. Despite this retreat, its shares are up 15.5% in the past month.
Barrick has underperformed the Zacks Mining – Gold industry’s rise of 23% while outperforming the S&P 500’s decline of 2%. Newmont, Kinross Gold and Agnico Eagle have rallied 28.1%, 28.3% and 30.6%, respectively, over a month.
B’s One-month Price Performance
Image Source: Zacks Investment Research
B stock broke above its 50-day simple moving average (SMA) on Aug. 5, 2026, thanks to a rebound in gold prices. It also crossed its 200-day SMA on Aug. 18, 2026, and subsequently accelerated sharply before pulling back. Following the recent declines, the stock is again approaching the 200-day SMA. The pullback reflects renewed pressure on gold prices from higher oil prices and rising rate-hike expectations. The 50-day SMA has been below the 200-day SMA since a death crossover on June 23, 2026, signaling bearish momentum.
B Trades Above 50-Day SMA
Image Source: Zacks Investment Research
Let’s take a look at Barrick’s fundamentals to better analyze how to play the stock.
Growth Projects to Underpin Production Upside for Barrick
Barrick is well-positioned to capitalize on advancements across its key growth projects, which are expected to meaningfully boost production. Its major gold and copper initiatives, including Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile and Lumwana Super Pit, are progressing on schedule and within budget, setting the stage for the next wave of profitable output.
The Goldrush mine is ramping up to the targeted 400,000 ounces of production per annum by 2028. Bordering Goldrush is the Fourmile project, which is yielding grades double those of Goldrush and is anticipated to become another Tier One mine. Barrick has announced the advancement of its planned IPO of a new company that will hold its North American gold assets and the Fourmile project, in which it will hold a significant controlling interest. Newmont also consented to Barrick’s planned North American IPO.
The $2-billion Super Pit Expansion Project at Barrick’s Lumwana mine is progressing steadily, accelerating its shift into a Tier One copper mine. Barrick stated that the Lumwana expansion is the result of a significant turnaround, transforming the mine from an underperforming asset into a vital part of both its global copper portfolio and Zambia’s long-term development strategy. The expansion is expected to produce 240,000 tons of copper annually. First copper from the expansion is targeted by the end of the first quarter of 2028.
Robust Liquidity & Cash Flows Back B’s Capital Allocation
Barrick has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development, exploration and acquisition opportunities, drive shareholder value and reduce debt. As of June 30, 2026, the company held roughly $5.9 billion of cash against $4.7 billion of debt, leaving $1.2 billion of net cash. It also had an undrawn $3 billion revolving credit facility and no meaningful debt maturities until 2033.
Attributable free cash flow reached $1.35 billion in the first half of 2026, up 211% year over year. Barrick returned $1.5 billion to its shareholders in the second quarter, including $1.21 billion of share repurchases under its $3 billion authorization. Barrick offers a dividend yield of 1.6% at the current stock price. Its payout ratio is 20%, with a five-year annualized dividend growth rate of roughly 14.3%.
Favorable gold prices should translate into higher realized prices, leading to strong profit margins and free cash flow generation for Barrick. While gold prices have eased from the record highs logged earlier this year, they remain supportive.
Bullion has come under renewed pressure after hitting a more than three-month high near $4,650 per ounce in late August 2026. Prices fell to a more than three-week low near $4,300 an ounce yesterday. A spike in oil prices amid heightened U.S.-Iran tensions intensified inflation concerns, while higher Treasury yields and a stronger dollar reduced gold's appeal. These, combined with increased expectations for a U.S. interest rate hike, weighed on gold. Nonetheless, bullion prices have again climbed above $4,400 an ounce as the greenback and Treasury yields eased from recent highs.
Barrick Hamstrung by Higher Production Costs
Barrick is challenged by higher costs, which may weigh on its margins. Its total cash costs per ounce of gold and all-in-sustaining costs (AISC) increased around 15% and 11% year over year, respectively, in the second quarter. Both also rose sequentially. AISC of $1,866 increased from the year-ago quarter due to higher total cash costs per ounce. Higher fuel prices began affecting costs in the second quarter, although management said operating efficiencies mitigated some of the impact.
For 2026, Barrick projects AISC in the range of $1,760-$1,950 per ounce, indicating a significant year-over-year increase at the midpoint compared with $1,637 in 2025. Cash costs per ounce are forecast to be $1,330-$1,470, up from $1,199 in 2025.
Tepid Production View Dampens B’s Prospects
Barrick’s operating execution improved in the second quarter, but the full-year gold outlook implies no growth from 2025. It maintained 2026 attributable gold production guidance of 2.9-3.25 million ounces versus 3.26 million ounces produced in 2025. This leaves full-year delivery dependent on continued second-half execution across several operations despite production tracking slightly ahead of plan at midyear.
What B’s Earnings Estimates Indicate
The Zacks Consensus Estimate for B’s 2026 earnings per share has been revised lower over the past 60 days. The consensus estimate for 2026 earnings implies a year-over-year rise of 47.1%.
Image Source: Zacks Investment Research
Conclusion: Hold Onto B Shares
Barrick’s initiatives to boost production, its strong balance sheet, attractive valuation and healthy dividend yield present a favorable setup. Despite the recent retreat, still-favorable gold prices should further aid margins and cash flows. Higher production costs and a soft production outlook, however, call for caution. Therefore, retaining this Zacks Rank #3 (Hold) stock will be prudent for investors who already own it.
View the Zacks #1 Rank List
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Barrick Mining Trading at a Discount: Should You Buy the Stock Now?
Key Takeaways
Barrick Mining Corporation (B - Free Report) is currently trading at a forward 12-month earnings multiple of 11.04, a roughly 15% discount when stacked up with the industry average of 12.97X. It is also trading at a discount to its gold mining peers, Agnico Eagle Mines Limited (AEM - Free Report) , Newmont Corporation (NEM - Free Report) and Kinross Gold Corporation (KGC - Free Report) . Barrick, Newmont and Kinross Gold have a Value Score of B each, while Agnico Eagle has a Value Score of C.
B’s P/E F12M Vs. Industry, NEM, AEM & KGC
B stock has lost its shine lately, with a pullback in gold prices, losing nearly 6% in a week. Despite this retreat, its shares are up 15.5% in the past month.
Barrick has underperformed the Zacks Mining – Gold industry’s rise of 23% while outperforming the S&P 500’s decline of 2%. Newmont, Kinross Gold and Agnico Eagle have rallied 28.1%, 28.3% and 30.6%, respectively, over a month.
B’s One-month Price Performance
B stock broke above its 50-day simple moving average (SMA) on Aug. 5, 2026, thanks to a rebound in gold prices. It also crossed its 200-day SMA on Aug. 18, 2026, and subsequently accelerated sharply before pulling back. Following the recent declines, the stock is again approaching the 200-day SMA. The pullback reflects renewed pressure on gold prices from higher oil prices and rising rate-hike expectations. The 50-day SMA has been below the 200-day SMA since a death crossover on June 23, 2026, signaling bearish momentum.
B Trades Above 50-Day SMA
Let’s take a look at Barrick’s fundamentals to better analyze how to play the stock.
Growth Projects to Underpin Production Upside for Barrick
Barrick is well-positioned to capitalize on advancements across its key growth projects, which are expected to meaningfully boost production. Its major gold and copper initiatives, including Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile and Lumwana Super Pit, are progressing on schedule and within budget, setting the stage for the next wave of profitable output.
The Goldrush mine is ramping up to the targeted 400,000 ounces of production per annum by 2028. Bordering Goldrush is the Fourmile project, which is yielding grades double those of Goldrush and is anticipated to become another Tier One mine. Barrick has announced the advancement of its planned IPO of a new company that will hold its North American gold assets and the Fourmile project, in which it will hold a significant controlling interest. Newmont also consented to Barrick’s planned North American IPO.
The $2-billion Super Pit Expansion Project at Barrick’s Lumwana mine is progressing steadily, accelerating its shift into a Tier One copper mine. Barrick stated that the Lumwana expansion is the result of a significant turnaround, transforming the mine from an underperforming asset into a vital part of both its global copper portfolio and Zambia’s long-term development strategy. The expansion is expected to produce 240,000 tons of copper annually. First copper from the expansion is targeted by the end of the first quarter of 2028.
Robust Liquidity & Cash Flows Back B’s Capital Allocation
Barrick has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development, exploration and acquisition opportunities, drive shareholder value and reduce debt. As of June 30, 2026, the company held roughly $5.9 billion of cash against $4.7 billion of debt, leaving $1.2 billion of net cash. It also had an undrawn $3 billion revolving credit facility and no meaningful debt maturities until 2033.
Attributable free cash flow reached $1.35 billion in the first half of 2026, up 211% year over year. Barrick returned $1.5 billion to its shareholders in the second quarter, including $1.21 billion of share repurchases under its $3 billion authorization. Barrick offers a dividend yield of 1.6% at the current stock price. Its payout ratio is 20%, with a five-year annualized dividend growth rate of roughly 14.3%.
Favorable gold prices should translate into higher realized prices, leading to strong profit margins and free cash flow generation for Barrick. While gold prices have eased from the record highs logged earlier this year, they remain supportive.
Bullion has come under renewed pressure after hitting a more than three-month high near $4,650 per ounce in late August 2026. Prices fell to a more than three-week low near $4,300 an ounce yesterday. A spike in oil prices amid heightened U.S.-Iran tensions intensified inflation concerns, while higher Treasury yields and a stronger dollar reduced gold's appeal. These, combined with increased expectations for a U.S. interest rate hike, weighed on gold. Nonetheless, bullion prices have again climbed above $4,400 an ounce as the greenback and Treasury yields eased from recent highs.
Barrick Hamstrung by Higher Production Costs
Barrick is challenged by higher costs, which may weigh on its margins. Its total cash costs per ounce of gold and all-in-sustaining costs (AISC) increased around 15% and 11% year over year, respectively, in the second quarter. Both also rose sequentially. AISC of $1,866 increased from the year-ago quarter due to higher total cash costs per ounce. Higher fuel prices began affecting costs in the second quarter, although management said operating efficiencies mitigated some of the impact.
For 2026, Barrick projects AISC in the range of $1,760-$1,950 per ounce, indicating a significant year-over-year increase at the midpoint compared with $1,637 in 2025. Cash costs per ounce are forecast to be $1,330-$1,470, up from $1,199 in 2025.
Tepid Production View Dampens B’s Prospects
Barrick’s operating execution improved in the second quarter, but the full-year gold outlook implies no growth from 2025. It maintained 2026 attributable gold production guidance of 2.9-3.25 million ounces versus 3.26 million ounces produced in 2025. This leaves full-year delivery dependent on continued second-half execution across several operations despite production tracking slightly ahead of plan at midyear.
What B’s Earnings Estimates Indicate
The Zacks Consensus Estimate for B’s 2026 earnings per share has been revised lower over the past 60 days. The consensus estimate for 2026 earnings implies a year-over-year rise of 47.1%.
Conclusion: Hold Onto B Shares
Barrick’s initiatives to boost production, its strong balance sheet, attractive valuation and healthy dividend yield present a favorable setup. Despite the recent retreat, still-favorable gold prices should further aid margins and cash flows. Higher production costs and a soft production outlook, however, call for caution. Therefore, retaining this Zacks Rank #3 (Hold) stock will be prudent for investors who already own it.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.